Will Digital Telco model be the Holy grail for struggling South Asian Telcos

2 Billion Telco Customers in South Asia. Yet The industry is struggling.  

Circles Life, Simpel, Giff Gaff, Lowi do these names ring a bell. From Spain to Singapore these so called Up start Telcos are leading the charge as the Mobile Network Operators are running for cover as they see their market shares fall. As if with a glaring consistency across continents these Digital telcos are weaning away customers as behemoth Telcos are losing connect with the evolving, demanding and digitally oriented customers.

Digital companies such as Amazon, Netflix and Uber have set a new standard for personalized, simple and digital experiences, and customers expect the same from their telecom providers.Customers want services that are simple to explore, use and pay for. They’re looking for experiences that allows them to navigate seamlessly, in a personalized way that is uniquely suited to their specific needs.

Yet, while customers crave simplicity, Telcos have become mired in complexity. As they devise new price plans and services, they retain old ones, along with the channels and IT systems needed to sustain them, which leads not just ever increasing complexity often at the cost of customer experience.

As Telcos struggle to overcome these obstacles, they are facing pressure from a new breed of radically simple and digital-first insurgents that are not weighed down by legacy products, journeys and channels for them customer centricity is key.

Customer centric Telcos that want to be customer centric have discovered that simplicity isn’t always simple. This proliferation of plans and rules leads not only to increased complexity and cost but it also presents significant hurdles to providing seamless customer journeys and hinders efforts to become more digital. For many leadership teams, it’s also about adopting a realistic view of the value at stake and risks of product simplification.

The Telco's owe this simplification and digital transformation to their customers to at least create parity with other customer facing categories that have enabled their customers completely. The Telco’s need to catch up rather than hide behind the veneer of regulatory protection. Importantly Bain’s analysis of over 150 Telcos in 12 markets shows that those embracing an approach that are simple and digital outperform their peers in customer loyalty and both top- and bottom-line growth. So this journey is win- win for both Telcos and customers alike.

A key part of creating simple and digital experiences for customers is devising a digital-first omni channel strategy that puts the digital footprint and physical channels in tandem at the center of everyday marketing, sales and service transactions. Telcos aim to establish digital experiences that are so smooth and simple that customers discover that it is quicker, easier and more satisfying than doing the same thing using only one channel.

Consumers now expect to be able to research and buy almost anything with a few touches or clicks. And they want simple and digital interactions from a trusted third party source. Price comparison sites have been one of the great innovations of the decade. By allowing to compare dozens of offerings at the click of a button, they have forced insurers & telcos to enable customers make informed choices and make tangible savings in the bargain. 

True empowerment will happen when Telcos working in partnership with Digital aggregators help build this Digital Ecosystem that will put personalisation and transparency as the pillars of customer centricity.